|SWe have also been watching European ULSD prices to see if
we can gain any insights that might carry over into U.S. ULSD price behavior.
|SEurope went through its transition to ULSD in 2005, so it
has had a little more time for the market to settle.
|SSince some areas in Europe moved to ULSD in advance of
2005, price information is available before 2005. This chart shows Europe’s ULSD’s premium
over heating oil since early 2003. It
shows some extra price pressure at the end of 2004 and spring of 2005, but
prices seem to have settled at about 10 cents per gallon over heating
oil. U.S. ULSD spread over heating
oil was about 15 cents in December.